The Optimal Distance to Port for Exporting Firms
Abstract
Success in international trade depends, amongst other things, on distance from markets. Most new economic geography models focus on the distance between countries. In contrast much less theorizing and empirical analysis have focused on how distances within a country鈥攆or instance due to the location behaviour of exporting firms鈥攎atter to international trade. In this paper we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an export-oriented firm would locate from a port. We present empirical evidence from South Africa in support of the model.
Citation
Gries, T.; Naude, W.; Matthee, M. The Optimal Distance to Port for Exporting Firms. UNU-WIDER, Helsinki, Finland (2008) 18 pp. ISBN 978-92-9230-07-078-4 [WIDER Research Paper No. 2008/32]